Australia: Shares mark 2-month closing low on Omicron fears

[BENGALURU] Australian shares slipped on Wednesday (Dec 1) to a 2-month closing low as renewed concerns about the efficacy of Covid-19 vaccines against the Omicron variant overshadowed data showing the local economy performed better than expected in the September quarter.

The S&P/ASX 200 index closed 0.28 per cent at 7,235.9, its weakest level since Oct 6, after shedding 1 per cent in early trade.

Australian authorities flagged another probable case of the Omicron variant in Sydney, adding to worries fuelled by comments from Moderna's chief executive officer that vaccines were likely to be less effective against the new variant.

"Few vaccine and therapy chief executives have expressed concerns about the efficacy of vaccines against the Omicron variant and it will take a few weeks for us to know the facts," said Mathan Somasundaram, chief executive officer at Deep Data Analytics.

Meanwhile, the Australian economy shrank 1.9 per cent in the September quarter, significantly better than the anticipated 2.7 per cent decline by economists.

Supermarket giants Woolworths fell 2.4 per cent and Coles dropped 1.6 per cent, while fruits and vegetables producer Costa Group skidded 4.2 per cent to a 17-month low.

Financials closed 0.05 per cent higher after falling 1 per cent in mid-day trade with Commonwealth Bank of Australia, the country's largest lender, gaining 0.75 per cent.

Australia and New Zealand Banking Group, the country's fourth-largest lender, shed as much as 1.4 per cent, hitting its lowest in 9 months, after it said a class action proceeding had been filed against it for "unfair" interest charged from credit card customers.

Miners weathered the selling best and rose 0.95 per cent as Chinese iron ore futures extended their rally on the back of recent restocking demand at steel firms and as prices of other metals climbed.

Sector heavyweights BHP Group, Rio Tinto and Fortescue Metals advanced between 1.8 per cent and 2.8 per cent.

New Zealand's benchmark S&P/NZX 50 index was largely unchanged at 12,724.3.

REUTERS